Recent comments from Amundi representative Vincent Mortier raise questions regarding the potential impact of the GENIUS Act on the market for dollar-backed stablecoins and the global economy.
Background of GENIUS Act
The GENIUS Act, passed by the US Senate on June 17, aims to regulate stablecoins by establishing reserve and capital requirements. The bill allows companies like Apple, Google, and Elon Musk's X to issue their own stablecoins.
Potential Consequences
Vincent Mortier noted that if the GENIUS Act is implemented incorrectly, it could lead to the creation of 'an alternative to the US dollar,' contributing to a weakening of the American currency. He also emphasized that companies issuing stablecoins could take on a role they were not meant to play, becoming 'quasi-banks.' This could potentially destabilize the global payments system.
Future of Stablecoins and RWA Market
Analysts expect the total value of stablecoins to grow from the current $250 billion to $3.7 trillion by 2030. Expert Abdul Rafay Gadit posits that the GENIUS Act could provide positive momentum for the real-world asset (RWA) market and tokenization, opening new opportunities for digital currencies.
In conclusion, the passage of the GENIUS Act could significantly impact the stablecoin market and the long-term stability of the dollar, necessitating close monitoring by regulators and market participants.
